Overseas investment decision for case 201110096 - Matariki Forests

An overseas investment in sensitive land, being the Applicant's acquisition of:

• a freehold interest in 4,795.5794 hectares of land at Dalethorpe, Homebush, Kellaways, Lowmount, High Peak, Newton and Wyndale Forests and Lowmount Extension, Canterbury Foothills; and
• a leasehold interest in 12.6600 hectares of land at Dalethorpe, Homebush, Kellaways, Lowmount, High Peak, Newton and Wyndale Forests and Lowmount Extension, Canterbury Foothill

The Applicant is New Zealand's third largest forestry company and owns approximately 27% of the commercial plantation forests in the Canterbury region.

The land is currently used for forestry, planted predominantly in Radiata Pine and Douglas Fir.

The proposed transaction is consistent with the Applicant's continuing investment strategy involving forestry in New Zealand.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Creation/Retention of jobs
17(2)(a)(iv) – Efficency/productivity
17(2)(b) – Indigenous Vegetation/Fauna
17(2)(e) – Walking Access
17(2)(f) – Offer to sell riverbed to the Crown

Overseas Investment Regulations 2005
28(a) – Consequential Benefits
28(e) – Previous investments
28(f) – Advance significant government policy or strategy